RadioShack Announces Strong Earnings

For the second consecutive quarter, RadioShack announced surprisingly strong earnings, claiming net income of $42.5 million for the first quarter, compared with $8.4 million the previous year in the first quarter.

RadioShack’s profits have largely increased due to cost-cutting claimed through store closings and employee cuts. The strong quarter was also attributed by the company to the recapture of a federal telecommunications excise tax, as well as the absence of an $8.9 million charge last year that did not occur in 2007.